The Ministries of Energy and Finance will approve a Joint Order on the inventory of natural gas networks in one rural and one urban locality in the Republic of Moldova, in order to test the proposed methodology for inventorying and managing natural gas networks that are either privately owned by third parties or without ownership, but currently managed by the natural gas distribution enterprises of SA “Moldovagaz.”

Based on the experience gained through the pilot project, evaluation activities are to be scaled up nationwide.

The announcement was made by Minister of Energy Dorin Junghietu during the closing event of a technical assistance project funded by the Soros Foundation Moldova. As part of the project, a Concept was developed on the management of natural gas networks owned by third parties or without ownership, but administered by Moldovagaz.

Out of the total 25.8 thousand km of natural gas distribution networks, about 35% belong to natural gas companies, over 60% are under the technical servicing of gas distribution system operators, and about 4.4% are considered ownerless networks, which continue to be operated by system operators in line with minimum safety requirements for the operation of natural gas distribution systems.

As a result, enterprises are not entitled to invest in the modernization or capital repair of these networks, nor to calculate depreciation for them.

For over 30 years, Moldova’s natural gas networks have developed in a fragmented manner, through investments made by the state, private companies, or even direct contributions from local communities and citizens. On one hand, this has expanded the population’s access to gas, but on the other hand, it has generated multiple legal and technical challenges, along with uncertainties regarding investments in modernization and safety.
“Now we can talk about a framework that sets clear rules: who manages these networks, how the necessary investments are ensured, and who bears responsibility for security and continuity of supply,” stated Minister of Energy Dorin Junghietu.

Based on the Concept, an inventory regulation has been drafted, and the pilot project will be launched in the localities selected by the two Ministries.

“The technical assistance launched in 2023 supported the Ministry of Energy in developing the conceptual and legal framework for managing natural gas networks — a critical area for energy security, and for the social and economic resilience of the people of the Republic of Moldova. For the Soros Foundation Moldova, this was the first project in the energy sector and an example of how independent expertise can strengthen the work of public institutions in the process of European integration,” said Daniela Vidaicu, Executive Director of the Soros Foundation Moldova.

Currently, Moldova’s natural gas transmission system is operated by “Vestmoldtransgaz” LLC, while the distribution system is managed by 19 licensed operators, including 12 companies affiliated with SA Moldovagaz.

It is worth noting that among the natural gas distribution networks under the technical servicing of SA “Moldovagaz” and its subdivisions:
− 44.9% (6,643.2 km) are owned by individuals;
− 41.9% (6,200.2 km) are owned by local public authorities;
− 13.3% (1,963.3 km) are owned by legal entities;
− 7.9% (1,173.9 km) are serviced without contract, including 300 km of ownerless networks.

Following the Court of Accounts’ report on the natural gas system, Parliament tasked the Ministry of Energy with developing the Concept for managing natural gas networks that do not belong to SA “Moldovagaz,” and with submitting proposals to the Government on the form of administration and the entity responsible for managing these pipelines.

In this regard, after drafting the Concept, the Ministry of Energy submitted the proposed management solutions to the Government. To assess the effectiveness of these proposals, it was decided to promote a Pilot Project that will define and establish the most viable solutions applicable to Moldova’s natural gas infrastructure.